Thou shalt lend. At subsidised rates. To small businesses. Cristina Fernández, Argentina’s president, has again recently exhorted the country’s banks to direct some five per cent of their deposits to providing corporate loans.
That will create a pool of around 17bn pesos to be lent at rates expected to be around 15 per cent – well under the annual rate of inflation, which private economists estimate at around 25 per cent (official price data have lost all credibility amid six years of suspected manipulation). Continue reading »